Nigerian Gencos Threaten To Shut Down Plants If Government Fails To Check Looming Challenges

APGC calls out Federal Government to address challenges currently faced by power sector

The power generation companies in Nigeria have threatened to shut down plants over challenges looming over the country’s power sector.

The Gencos through their association, the Association of Power Generating Companies (APGC), have released a statement on Monday calling out the Federal Government to address the challenges they are currently facing in the country.

Dr. Joy Ogaji, the Executive Secretary of APGC, explained in the statement that the recent decline in available generation capability can be attributed to the challenges experienced by the Gencos in the electricity market.

The list of challenges looming over the country’s power sector as pointed out by Ogaji includes liquidity issues, power rejection by the electricity distribution companies and gas constraints due to the market’s poor condition.

“Few of the thermal power plants were out due to planned maintenance, which is allowed in the sector,” Ogaji said adding, “The decline was not an act of rebellion by the Gencos neither was it deliberate but was beyond their control.”

The statement went on to warn that the Gencos will be forced to shut down their plants if the government or the necessary agencies doesn’t take any action in this regard as soon as possible.

“This should serve as a wake-up call to the Federal Government to the goings-on in the industry with regards to the Gencos and if the actions are not taken by the necessary agencies, Gencos will be forced to shut down business,” Ogaji noted in the statement.

According to a report coming from The Punch, citing data provided by the association, the available generation capability dropped to 5,207.57 megawatts in December from 7,238.12MW in November, while average generation increased slightly to 4,162.47MW from 4,093.76MW.

Ogaji revealed that Afam Power Plc (Afam VI Gas/Steam), GT12, 13 and ST10 power plants were shut down for around 16 days due to planned maintenance that was carried out by the gas suppliers on their facilities. Due to the maintenance work, Afam’s available generation capability reduced from about 490MW to zero.

Furthermore, the gas suppliers had cut the gas supply to Alaoji NIPP due to the firm’s inability to pay for gas while Jebba Power Station’s generation capability reduced by about 110MW to 360MW due to low load demand. The reduction in demand by distribution companies also affected Egbin and Omoku power plants.